Tuesday, January 15, 2008

Review of “Building Wealth” by Ric Edelman, Last Part

This is the last part of a review of Ric Edelman’s audio book “No-Nonsense System for Building Wealth.” This review began here.

The audio program contains an extended pitch for long-term care insurance. See this essay for a discussion of some of the things to look out for with this type of insurance. According to a Consumer Law Page article (the web page with this article has disappeared since the time of writing), “sales agents are driven by high commissions” in the long-term care insurance business. I don’t know whether it is a good idea to buy long-term care insurance or not, but it would seem that those who sell it make good money.

Some good advice

Let’s not focus entirely on the negative side. On the positive side, the CDs were nice and round. I’m just kidding. Here are some of the good points made in this audio book.

· Make a realistic financial plan consistent with your goals.
· It’s okay to start investing with small amounts. Just keep saving.
· Avoid frequent investment changes in an attempt to time the market.
· Discuss your financial plans with your parents and adult children.
· Control your emotions when it comes to investing.
· Avoid credit card debt.
· Don’t buy stock if you have credit card debt.
· Don’t speculate in the latest hot sector or you’ll risk getting caught when the bubble bursts.
· Always have a resume ready in case you need it.
· Maintain cash reserves in case of emergency, like job loss.
· Participate in your company’s retirement plan.
· Pay attention to frequent small expenses.

Summing Up

All the problems in this audio book spoil what could otherwise have been a useful investment primer. Edelman’s speaking style is interesting and easy to follow, and his listeners could benefit from most of his advice. However, because of the self-serving aspects of his advice, I cannot recommend this audio book.

No comments:

Post a Comment